3.1.1.31 Shared care rate calculation

Summary

This topic provides an example of the shared care rate calculation for FTB Part A and FTB Part B where an individual shares the care of their FTB child with another individual who is not their partner.

Note: From 1 July 2008, the term 'shared care' only applies where an individual has care of an FTB child between 35% and 65% of the relevant care period. An FTB shared care percentage will be used to work out an individual's FTB Part A rate. The FTB shared care percentage will be worked out as shown in the table below:

No. of nights care (annually)

Percentage of care

FTB shared care percentage

0 to 51

0% to less than 14%

Not eligible for FTB.

52 to 127

14% to less than 35%

Not eligible for child related components of FTB. Eligible for RA component and other government benefits.

128 to 175

35% to less than 48%

25% plus 2% for each percentage point over 35%.

Example: If an individual has care of a child for 40% of the time, their FTB shared care percentage is calculated as follows:
25 + [(40 − 35) × 2] = 35%

176 to 189

48% to 52%

50%

190 to 237

More than 52% to 65%

51% plus 2% for each percentage point over 53%.

Example: If an individual has care of a child for 60% of the time, their FTB shared care percentage is calculated as follows:
51 + [(60 − 53) × 2] = 65%

238 to 365

More than 65% to 100%

100%

The rate calculations are used to illustrate the principles of sharing a rate. See the references given below for more detailed information about applying the FTB income tests for FTB Part A Method 1 and Method 2 and FTB Part B.

Example - calculating shared care FTB rate

Hilary has 2 FTB children, Daniel aged 3, and Jessica aged 5. Hilary has full care of Jessica, and shares the care of Daniel with her ex-partner Matt. Her percentage of care for Daniel has been determined to be 58%. Hilary's ATI is $5,911, and her combined ATI with her current partner is $100,000.

The following tables show how to calculate Hilary's rate of FTB Part A and FTB Part B. As Hilary's combined ATI is greater that the higher income free area, her rate of FTB Part A will be calculated using Method 2. However, as Step 3 of Method 2 requires a comparative adjusted Method 1 calculation, the Method 1 FTB child rates have also been calculated. The higher of the 2 rates calculated under adjusted Method 1 and Method 2 will be Hilary's rate.

FTB Part A rate

Step

Action

Amount

1

Determine the FTB child rate (1.1.F.57) for each child under Method 1 and Method 2.

Note: This calculation uses maximum and base standard rates as at 1 July 2019.

Determine standard rate of FTB Part B payable for Jessica as if she was the only FTB child.

$2,883.50

2

Determine percentage of care for Daniel.

Hilary 58%; Matt 42%

3

Determine FTB shared care percentages.

Hilary 61%; Matt 39%

4

Determine the standard rate of FTB Part B payable for Daniel as if he was the only FTB child.

$4,128.15

5

Multiply the rate for Daniel by percentage of care = $4,128.15 × 61%
This is the shared standard rate of FTB Part B for Daniel.

$2,518.17

6

Compare the rate for Jessica to the shared rate for Daniel. The higher of the 2 rates is the standard rate payable.

Hilary's standard rate is the amount worked out for Jessica.

$2,883.50

7

Work out the ES Part B standard rate payable for each of the FTB children of the individual whose care is not shared (Jessica), as if they were an only child.

$51.10

8

Work out the ES Part B standard rate for each shared care child (Daniel) as if they were an only child.

$73.00

9

Multiply the result from Step 8 for each child by the FTB shared care percentage for that child (Daniel). If the individual is partnered, go to Step 10.

$73.00 × 61% = $44.53

10

Compare the results from Step 7 and Step 9. The highest rate payable for any of the FTB children is the individual's standard rate of ES Part B.

$51.10

11

Calculate the maximum FTB Part B rate by adding the FTB Part B supplement and the ES Part B amount from Step 10.
If the individual has at least one unshared FTB child, the rate of FTB Part B supplement is the FTB Part B gross supplement amount.

$2,883.50 + $372.30 + $51.10 = $3,306.90

12

Hilary is not a single parent, therefore the ATI test must be applied.

13

The FTB Part B income test is applied to the income of the secondary earner (1.1.S.25).
- Income excess = ATI less the income free area: $5,911.00 − $5,694.00 = $217.00
- Reduction for ATI = 20% of the income excess: $217.00 × 20% = $43.40
- Income tested rate of FTB Part B: $3,306.90 − $43.40